5 Simple Tips for Managing Your Finances in 2023
rebuild your worth, book a free consultation todayBook Now
By Bromwich+Smith Staff | 1274 words | Reading Time: 6 minutes and 22 seconds | Date: 2022/02/21
Reducing debt, loosing weight, spending more time with family- do any of those goals sound familiar? Many of us, choose to make New Years Resolutions goals to set us up for a successful year. These goals are often placeholders, things we promise to work on but more often than not they get put on the back burner. 2023 is the year you can reduce your debt, and regain control of your finances, and you can start off slowly with 5 simple to follow steps.
Set A Budget
A budget, financial plan, a financial blue print- whatever you want to call it a budget is your best tool to show you the true story of your current financial situation. Create a budge, meaning make a plan on how to spend the money you have based on the income you have.
Start by writing out your take home income, include any additional income including government payments, child support, rental income etc. Next subtract your expenses to determine how much you have left. When calculating your expenses think about everything that typically comes out of your account in a month, insurance, school fees, groceries- budget on the higher side for inflation, streaming services, household bills, loan payments, credit card payments etc.
Look at the amount left over and determine how to best use those funds. It may be paying off debt, going towards savings, or you may want to spend it. By tracking the extra income and knowing where it goes you will be able to understand what income can go towards discretionary spending.
If you spent more than you made, you can adjust your budget by cutting unnecessary expenses or earning more if possible. Implement the changes to your budget next month and keep your finances on track.
You may find that you don’t have the income you need to support your current financial situation, so you have two options- reduce your expenses or increase your income.
Reduce Household Costs
One of the first things you can look at to take control of your finances is to cut your monthly expenses.
While it may not be feasible to reduce all costs ie your mortgage or car payment, you can look into those variable expenses to reduce your monthly expenses.
Start slowly, as you may need time to research your options. Consider looking at your insurance. Is your current provider able to package up your car and house insurance and provide a lower rate? Maybe another company is able to do so. You can look at reducing your electricity consumption to reduce your utilities, look at your cable and cell phone plans and cut out unnecessary packages.
Grocery costs are one of the largest monthly expenses and prices continue to increase. By searching for store flyers, coupons and deals you may be able to save money at the stores. Consider buying in bulk for items that you know you will use. Stocking up when items are on sale can be costly up front but save you in the long run if those items go to use. Often grocery stores will have days when you save more or earn more points. Consider paying with credit cards that offer cash back or valuable point systems. We highly recommend paying off that credit card to avoid accumulating debt.
Another way to reduce costs is to cut back on eating out. We know that eating out may be a convenience, but it often comes at a high price tag. Look at how often you eat out, that includes a morning coffee! Look at where you may be able to cut back and start there. That may be one less Ordering in night, one less restaurant night or one less Coffee. When you calculate that cost over the year you will quickly see some extra income in your bank account!
Is there anything sitting in your garage or basement, taking up space and not being used? Maybe you purchased a new lawnmower and the old one is sitting there collecting dust. Perhaps you have an RV sitting on the driveway from the years when the kids wanted to camp, or spare tents and coolers. Consider placing the items for sale online. By decluttering items you no longer need, you can clear up space and make some money while your at it. Be considerate of the quality of items before selling, and be aware of any restrictions on used items. Many baby items are no longer eligible for resale, so do your research and make sure you are selling safe items.
Increase Your Income
If decreasing your expenses is not possible, or hasn’t made a large enough impact on your finances, you may need to consider ways to increase your income.
- Evaluate your value in your current role. Are you able to ask for a raise, or is there a higher paying position available? You may need to reconsider your current job and see if there are higher paying roles with other companies. Do some research and know your value.
- Do you have extra time you could commit to a part time job? This is the perfect chance to look for something that aligns with a hobby. Love crafting, consider the local craft store, maybe you are a great baker or a self proclaimed gym rat, see if your favorite hang outs are hiring! Another idea would be to see where you spend your money and apply for a part time job and secure employee discounts! Maybe you can take a night shift 1-2 times a week stocking shelves at the grocery store, or working at a kids clothing shop.
- Hustle! Many Canadians have started a side hustle to pick up some extra money. Consider something you love, and grow your own business.
With the addition of income, please make sure you are aware of any tax implications as you don’t want to be on the line come tax season for unclaimed taxes. Working with a financial planner will help set you up for financial success.
Set Realistic goals!
We want you to be set up for success, and that starts with a realistic financial goal. Paying off $30,000+ in debt in a single year may not be feasible without debt relief options regulated through a Licensed Insolvency Trustee.
We know that when goals are set at unachievable levels, we can feel discouraged when we don’t succeed. We suggest starting off slowly, and making small changes to begin. Track all of the wonderful progress you make, and celebrate the wins you have!
Know when to ask for help
If you find yourself unable to make financial gains on your own don’t give up. Bromwich+Smith is here to help you find success. Reach out to our team for a no obligation consultation and find out what solutions are available to you. It is not uncommon for those calling in to hear that their debt is not as unmanageable as they believe it to be and that debt consolidation may be an option for them. Bankruptcy is not a debt relief option that suits everyones situation, so rest assured that it is not an automatic solution if you call Bromwich+Smith.
We have a team dedicated to helping you find the right debt relief solution, and to helping you thrive financially. Debt doesn’t need to be a grey cloud that follows you around every day, there are options to alleviate that stress.
No matter what your financial story is, Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1-855-884-9243 , or request a call back at contact us page. We want to see you flourish!